OPEN-SOURCE SCRIPT
Updated Expected Z-Scored Price
Expected Z-Scored Price is a Mean Reversion based indicator, it shows you where the price should be based on its average price and its average increase over the set previous period, indicating whether the price is under/overvalued giving a unique insight into the current value of an asset, for example 
BTCUSD , however is designed for all assets that move in price.
How to read the Expected Z-scored price?
1. Zoom closer, you will see a line in the middle, this is where the price should be based on its average price and its movement
2. The lines above/below are the Standard Deviations (SD) of this expected price, if the price is in the lower price bands or even below them, it is undervalued and it is time to buy/accumulate it, if the price is above the mean (average) price, it is undervalued and should be sold.
It is that easy!
!WATCH OUT!
- This is not a Trend Following indicator, it does not indicate the prices direction, therefore if the asset is undervalued it can still go down, the bands indicate the significancy of the under/overvalueness
- It is not 100% accurate
- Watch out for the significancy of the undervalue or overvalue
Bit more info
- Each line is one SD away from the mean
- Adjusting the timeframe will help you keep the mean and its SDs on the signal period you want them to
- You can adjust the color, thickness of the lines and bands in settings
BTCUSD , however is designed for all assets that move in price.How to read the Expected Z-scored price?
1. Zoom closer, you will see a line in the middle, this is where the price should be based on its average price and its movement
2. The lines above/below are the Standard Deviations (SD) of this expected price, if the price is in the lower price bands or even below them, it is undervalued and it is time to buy/accumulate it, if the price is above the mean (average) price, it is undervalued and should be sold.
It is that easy!
!WATCH OUT!
- This is not a Trend Following indicator, it does not indicate the prices direction, therefore if the asset is undervalued it can still go down, the bands indicate the significancy of the under/overvalueness
- It is not 100% accurate
- Watch out for the significancy of the undervalue or overvalue
Bit more info
- Each line is one SD away from the mean
- Adjusting the timeframe will help you keep the mean and its SDs on the signal period you want them to
- You can adjust the color, thickness of the lines and bands in settings
Release Notes
NEW MINI UPDATE!Now one of components of Expected price Z-score is an average of 3 periods, that will be adjustable
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.